Soho House has made an "ambitious move" to get its "mojo back", striking a $2.7 billion takeover deal to take the international members' club private after four years listed on the New York Stock Exchange, said The Telegraph. The takeover, by one of the largest hotel operators in the U.S., could help the company become the "playground of the rich and famous" once again.
'Global empire' Nick Jones opened the first Soho House three decades ago on London's Greek Street, envisioning a "networking destination for 'creatives,'" said the Daily Mail. It has since turned into a "sprawling global empire" with about 200,000 members in 46 venues around the world, including New York, Hong Kong, Mexico City and Paris.
Membership, which costs about $4,580 for global access, isn't easy to secure. Applicants must be nominated by two existing members and provide a biography detailing their career and interests.
After the pandemic, the group relaxed its "stringent" membership requirements and "ballooned" in size. But the rapid expansion brought fresh issues as members began complaining about crowded clubhouses and "lackluster service."
Since Soho House was listed in 2021, its share price has plummeted. Last year, New York short seller GlassHouse published a "damning criticism of the company's 'broken business model and terrible accounting.'" The chain, which appointed Andrew Carnie (pictured above) to replace Jones as CEO in 2022, said it "fundamentally rejects" the report.
A return to form? A buyout means the finance crowd, traditionally turned away from the clubhouses, has finally managed to "elbow its way in," said the Financial Times. While MCR Hotels is leading the takeover, a group of existing shareholders, including Jones, will retain their stakes in the company. Actor Ashton Kutcher will also invest and join the new board of directors.
The "upshot" is that the deal will bring together expert financiers and investors with experience running successful hotels, while keeping "faithful insiders" as part of the journey. But to deliver a solid return, the company will likely need to "find more members, charge existing ones more or spend less on showing them a good time" and "probably all three." |